Insurance clearly has many benefits for life, both for your protection and as an investment. But still there are some people who underestimated its services without knowing further. There are varies of insurance you can use according to your needs and coverage.
Here are five of them based on coverage you can consider as the most reliable one that suit your needs and condition.
The first type of insurance is life insurance, the most well-known insurance which most of people know best. This insurance offers protection against financial losses, loss of income or losses of family members due to the death, also it can be used as source of income. Life insurance also features its services to help a family member who left by the person due to the death by providing daily needs or another funds. This type of insurance clearly will help to bear financial burden for certain period.
There are two categories in life insurance, they are Term Life Insurance and Life Insurance for Life. Term Life Insurance provides protection for the insured only in a certain time based on the pre-agreement. This insurance usually covers for 5-20 years with a fixed premium. Differ from the Term Life Insurance, Life Insurance for Life provides lifetime protection for the insured and his/her family. Although it says this insurance covers for a lifetime period, the insurance companies limit this service only to 100 years.
Besides these two categories, there’s also Dual Life Insurance, an insurance service with two features of service. It’s a combined version of previous categories where Term Life Insurance can also be used as a long-term savings for the insured.
According to the Financial Services Authority (OJK), the second type of insurance which is Vehicle Insurance, this is an insurance designed to cover the combined liability. The liability for the vehicle itself and Legal Liability (TJH) for the third parties. The cases that will covered by this insurance includes accidents; either a collision, overturn vehicle, or slip that is caused damage to the vehicles.
More cases that covered by this insurance is any case happened due to bad deeds like robbery or violence. Fire is also a case that can be covered by this insurance, or damaging ferry during crossing, even the cost to transport the vehicle to the nearest garage.
Besides all of those cases this insurance also counts natural disaster that causes damage to the vehicles like floods, landslides, earthquakes and more. The amount of loss that will be covered due to an accident is usually 75% of the price of the vehicle. The same amount goes to loss of stolen vehicles that cannot be found within 60 days period. Also, the premium can be expanded due to certain factors such riots, terrorism, or any sabotage occurred that cause damage to the vehicle owned by the insured.
Besides Life Insurance, Health Insurance also one of the most known insurance among the society. As it’s named, Health Insurance covers for health or medical cost. You must be aware enough that the cost of medical needs are never cheap, this insurance will help to ease the burden of cost. As stated by OJK official websites, this insurance provides various benefits for the insured. This coverage includes reimbursement for both inpatient and outpatient cost, labor cost, dental treatment, and medical check-ups as well as consult session with a doctor.
Before you submit to have a Health Insurance you better study more about its system. For instance, the maximum age that will covered by this insurance, it’s up to the age of 70 as long as you have never canceled a policy before. More thing for you to consider is to fully understand the proposals before agree to its regulations. You also need to know that there’s two type of Health Insurance, one is issued by the government (BPJS for Health), another is issued by the private sector; both banks and insurance companies. Choose wisely that will fulfill your needs.
Property Asset Insurance
This insurance might be not that popular as two before. It’s arguably rarely used in Indonesia. Insurance of assets and property provides a guarantee for all risks that occur in the property, as stated by OJK.
Property Asset Insurance is divided into two categories, Home Insurance and Business Insurance. First categories, the Home Insurance, covers for the risks of damage to the house caused by fire, explosion, lightning, accident, or smoke. There’s also an expand guarantee for collateral damage due to riots, crime, and natural disasters.
Not so differs from Home Insurance, Business Insurance also provides coverage for damage of assets and properties. It’s a property all risk widely used in non-industrial sectors, guarantee property and assets of the hospital, offices, and schools. For the Industrial sector it covers all risks of damage at factories, warehouses, malls, and more industrial sites. For industrial property all risk guarantee, it covers not only buildings but there are also extensions to it. It includes protection for production machine activities and other vital operational activities of the company to sustain.
Unit Link Insurance
Unit Link Insurance is the last type of insurance based on its coverage. Consider different from the previous insurances, this insurance offers many advantages in its services. One highlight that makes this insurance different is that the deposit money you have will not only use for your protection but also can be an investment you put to add assets of the insurance company. OJK has confirmed that this insurance has increased about ten thousand percent compared to conventional insurance which only grew 380 percent.
More advantage of unit link insurance besides its investment function is you can withdraw the premium anytime you need, and it will not be forfeited. This insurance even covered in a long period from 75-80 years and even up to 100 years as offered by the insurance company. The system is quite flexible also, where the amount of policy does not change, and you can add funds or divert your investment funds to the other investments as you wish. This insurance also can be used to finance your children’s education.
Those are five types of insurance based on its coverage that you may consider to choose as one or more as your insurance services. Do not forget to observe the track record of the insurance company you are about to settle with, ensuring the company has the best services. One of the insurance company you can put on the list is Prima Emas Protection from Bank Danamon.